Spanish property market loses momentum as Q1 sales fall 8% year-on-year

Spain's real-estate market has downshifted from turbo mode, with sales in the first quarter of 2026 declining 8% compared with the same period last year.

Notaries have released fresh data showing 170,552 transactions concluded in Q1 2026. Whilst this represents a pullback, context matters: last year was a record-breaking period, making for a tough comparison. In reality, the market remains 18% above its ten-year average—a cooling, not a crash.

The decline has touched all major regions. The Balearic Islands fell hardest, down 15%, followed by the Canary Islands at 11%, with Andalusia and Valencia each recording 10% drops. Yet despite lower sales volumes, prices have continued their upward trajectory: the national average reached €2,022 per square metre, up 7% year-on-year and marking an all-time high.

Herein lies the paradox of Q1 2026: demand has weakened whilst prices have held firm. Sellers are maintaining their line. This pattern is typical in the early stages of a cooling cycle—volumes respond first, prices lag behind. The critical question is whether this represents merely a pause after the boom or the onset of a prolonged downturn. The next quarter will tell.

For investors, the message is clear: there is no need to rush, but neither is it time to panic.

Source: Spanish Property Insight